Future FinTech Signs Agreement to Build Cryptocurrency Mining Farm in the US

Rhea-AI Summary

Future FinTech Group Inc. (NASDAQ: FTFT) announced a joint venture with APC Service Ltd. to build a cryptocurrency mining farm in Ohio. The project will initially deploy 50MW of processing power, with an estimated total capacity of 300MW. The investment for this venture is projected at $62 million, with $12 million allocated for the first phase, including site acquisition and system upgrades. Completion of the first phase is expected by June 2022. The cooperative agreement aims to leverage both companies' expertise for sustainable energy use in mining.

Positive

• Joint venture established with APC Service Ltd. to build cryptocurrency mining farm.
• First project phase targeting 50MW processing power with potential expansion to 300MW.
• Total investment of $62 million indicates strong financial commitment.
• First phase projected completion by June 2022, enhancing operational timeline.

Negative

• None.

NEW YORK, Dec. 17, 2021 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("hereinafter referred to as "Future FinTech", "FTFT" or "the Company"), a leading blockchain-based e-commerce business and a fintech service provider, announced today that the Company signed a Cooperation Agreement (the "Agreement") with APC Service Ltd. ("APC") to establish a joint venture in Ohio, to build a cryptocurrency mining farm with a first project phase of 50MW of processing power, which, if successful, could be expanded to a total project size of 300MW. When the first phase of the 50 MW mining site is completed, it is projected that it will deploy approximately 12,000 S19 Antminers and accommodate about 1.3 EH/s of hash power.

The Company will first establish a wholly-owned subsidiary, to be called FTFT Super-computing that is authorized to conduct business in Ohio to invest in, develop and operate the cryptocurrency mining farm. As per the Agreement, APC has the option right to purchase up to 30% of FTFT Super-computing within 365 days of the completion of first phase of the mining farm. The overall capacity of the cryptocurrency mining farm project is projected to be 300MW which will consist of a build-out of 50 MW of processing power each over six expansion phases.

The total investment for the FTFT Ohio cryptocurrency mining farm project is estimated to be $62 million, with each of the six stages of the project projected to be $10 million per expansion phase; however, $12 million is being allocated for the first phase of the project for the acquisition of the site, plant development and the upgrading of the power system. APC has identified the project site that has an existing facility for the first phase of the project, which is expected to be completed by June 2022.

More complete information of the Agreement is set forth in the Form 8-K and its exhibits filed with the Securities and Exchange Commission on December 17, 2021. 

Mr. Shanchun Huang, Chief Executive Officer of Future FinTech, said, "We are actively planning and developing a global expansion strategy for our cryptocurrency mining business. Our strategic plan for this business is to develop cryptocurrency mining farms with relatively low start-up costs and economical sustainable energy in different regions of the world, and accelerate their deployment using our capabilities or through cooperation agreements with very strong partners. We believe that our cooperation agreement with APC to build a cryptocurrency farm in Ohio will be very positive for both parties."

Matt Liu, Chief Executive Officer of APC, said, "We are very pleased to have entered into a cooperation agreement with Future FinTech. APC is based in Hong Kong and we are engaged in environmental technology R&D, energy conservation and environmental protection engineering design and construction, and we also have deep experience in managing international engineering projects. We believe that our partnership with Future FinTech, as a leading blockchain technology company, will enable us to maintain our goal of the efficient use of energy for bitcoin mining. We believe that the two parties bring its own special expertise to the new enterprise which will result in a highly productive cryptocurrency farm." 

About Future FinTech Group Inc.

Future FinTech Group Inc. is a leading blockchain e-commerce company and a service provider for financial technology incorporated in Florida. The Company's operations include a blockchain-based online shopping mall platform, Chain Cloud Mall ("CCM"), and supply chain financing and services. The Company is also engaged in the development of blockchain based e-Commerce technology as well as financial technology. For more information, please visit http://www.ftft.com/.

Safe Harbor Statement
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2020 and our other reports and filings with SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

View original content:https://www.prnewswire.com/news-releases/future-fintech-signs-agreement-to-build-cryptocurrency-mining-farm-in-the-us-301447134.html

SOURCE Future FinTech Group Inc.

FAQ

What is the main objective of Future FinTech's new joint venture in Ohio?

The main objective is to establish a cryptocurrency mining farm with an initial capacity of 50MW, aiming for sustainable energy use.

How much is Future FinTech investing in the Ohio cryptocurrency mining project?

Future FinTech is investing a total of $62 million in the cryptocurrency mining farm project.

When is the first phase of the mining farm expected to be completed?

The first phase of the mining farm is expected to be completed by June 2022.

What are the future expansion plans for the cryptocurrency mining farm?

The project has potential for expansion up to a total capacity of 300MW through six additional phases.

Who is Future FinTech partnering with for the Ohio mining project?

Future FinTech is partnering with APC Service Ltd. for the Ohio cryptocurrency mining project.